MEMO

TO: All Employees
FROM: J.P. Mowery & Vicki Hammer
RE: 403(b) Annuities
DATE: July 30, 2010

As you are aware, The Pendleton County BOE offers a retirement savings program as described under section 403(b) of the IRS Code. This notice is to make you aware of the 403(b) Plan and provide enrollment information.

Under the 403(b) Plan, employees may contribute on a pretax basis to a 403(b) account, in which any investment earnings grow tax-deferred until they are distributed. The employee is responsible for investigating and selecting an investment service program (a"vendor") from among the vendors available under the 403(b) Plan and selecting from the investments offered by the vendor. Understanding the tax and investment consequences of the custodial account or annuity selected is your responsibility. You may seek investment, legal, or tax advice if desired. IRS Publication 571 (Tax Sheltered Annuity Programs for Employees of Public Schools) is available at www.irs.gov for further information and reference. Generally all full time and part-time employees are eligible to participate in the 403(b) Plan.

The contribution limit, set annually by the IRS, is $16,500 for 2010. To initiate payroll deductions to a 403(b) account you must execute the Employer's Salary Reduction Agreement (SRA), provided by the vendor you choose. It will then need to be sent to the payroll department for processing.

It is our intent to protect your information and administer the Pendleton County 403(b) Plan in accordance with applicable laws and regulations. To assist us with this, we will be utilizing the planwithease.com system to facilitate administration of the Pendleton County 403(b) Plan and our compliance with the 403(b) regulation by tracking information received via encrypted electronic data files over secure Internet channels.

Currently participating employees can access planwithease.com on the Internet at the following address: http://www.planwithease.com. Your user ID is your nine digit social security number and your temporary password is your birth date in MMYY format. Upon entering the site for the first time you will be asked to change your password. After completing your password change, it is important that you safeguard your password information.

Planwithease.com is a plan administration service offered through ING Life Insurance and Annuity Company, which makes available to you many features to help make accessing your plan easier.

If you have any questions regarding planwithease.com including next steps for implementation, please contact the Board Office at 304-358-3303 ext. 125 or 129.